One of Iran’s top auto manufacturers, Iran Khodro Company (IKCO), has restarted production lines to manufacture buses in the country after a long pause as demand for new public transport vehicles has increased in Tehran, as per local media reports.
Currently, the production lines are running at a lower capacity to deliver 620 buses and mini-buses to Tehran Municipality.
The company has signed an agreement worth IRR4tn ($15.56mn) with Tehran Mayor Pirouz Hanachi in June to deliver Euro-4 diesel buses with catalytic converters and Euro-6 liquid petroleum gas buses, along with high-quality mini-buses.
IKCO is expected to deliver the vehicles in phases and its subsidiary Iran Khodro Diesel can annually manufacture 5,000 buses in full capacity once it is subsidized, the company told reporters.
Tehran is facing a shortage in its public transportation system and the new vehicles are expected to help with that.
Iran’s auto sector is facing a crisis and due to the sanctions imposed by the United States, the renovation of the transportation fleet has allegedly become difficult, according to media reports.
Many foreign auto parts suppliers have ended collaboration with Iranian companies and the country cannot afford to import new buses in large numbers, while local manufacturers do not have an adequate volume of auto parts to boost production.